Eduardo Saverin, the Facebook co-founder immortalized by his falling out with Mark Zuckerberg in the movie The Social Network, has renounced his U.S. citizenship ahead of the companys IPO.

Saverin, 30, may have made the move for tax reasons, hoping to avoid the highest rates before Facebook goes public. Although born and raised in Brazil, before moving to the United States in 1992, he now lives abroad in Singapore. According to a spokeswoman, Saverin actually renounced his citizenship last September, but the information didnt become public until Bloomberg reported that the IRS released his name on April 30.

Paraphrasing Obama, “There would’ve been no facebook had it not been for (socialist) government.” Socialism works great! For the socialists. Then they make their pile (capitalist profits) and flee the country so the government can’t claim their “fair” share. Oh, the irony.

US is one of (or the) only countries in the world where citizens must pay income tax even if they don't live in the country. So this guy living in Singapore or Brazil or wherever, would have to pay income tax to the US if he maintains his citizenship.

Maybe business friendly but personal wealth, heck no. Taxes are extremely high. A typical low end car costs $100K. As a citizen, you lease realestate from the government — 99 year lease and never actually own it.

Have you lived there? I used to travel there frequently. Everything is heavily regulated, income and vat taxes are high, no one actually owns realestate, homes, condos, etc. — everyone “leases” their condos and homes from the government (99 year lease). That prevents wealth from being passed on.

Cars and other luxuries are heavily taxed. A typical automobile costs $100k. Not a high end car but a cheapie beater. Gasoline is heavily taxed and expensive.

He was born and raised in Brazil and now lives in Singapore. He pays taxes in Singapore as a resident, he’d be foolish to keep paying US taxes when he doesn’t live here anymore and gets no value from the US government.

Taxes are just how members of a society pay for the services the government provides to members. No more membership, no more government services, no more taxes, right ?

20
posted on 05/11/2012 2:26:42 PM PDT
by Kellis91789
(The ultimate result of shielding men from the effects of folly is to fill the world with fools.)

I have not lived there, but am quite familiar with their tax structure. Yes, they do have some high taxes as you mention, but his concern is with the income tax - they top out at 20%, vs our 37.5 - and capital gains tax, of which they have none.

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